Post on 14-Apr-2018
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Vishwajeet Dixit (27)
Pranav Sachdev (28)
Shashank Tulsyan (32)
Siddharth Bhasin (40)
Aman Shrivastava
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Contents:
Introduction
Input & Output
Strategies for CRP
Inventory Control
Advantages of CRP
Summary
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What is Capacity?
The work that the system is capable of doing in a period of time.
It must be determined at different levels:
plant
department
work center.
Used to determine time frame in standard hours of work.
Capacity = (no. of machines or workers)
x (no. shifts)
x (utilization)
x (efficiency)
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What is CRP?
A tool for determining capacity that is available
and required.
Verifies that you have sufficient capacity availableto meet the capacity requirements for MRP plans.
Helping planners make the right decisions on
scheduling before problems develop.
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Capacity Requirements Planning
Capacity Requirements Planning is a computerized
technique for projecting resource requirements for critical
work stations.
Inputs:
Planned order releases
Routing file
Open orders file
Outputs:
Load Profile for each work center
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Capacity Requirements
PlanningMRP planned
order
releases
Routing
file
Capacity
requirements
planning
Open
orders
file
Load profile for
each machine center
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Planned Order Releases: Information from the Material
Requirements Planning which tells when you should start the
order so it can be completed on time.
Routing Files: Information that details the requirements of
equipment and labor to complete the order as needed in the
required time frame.
Open Orders Files: Information regarding the orders that arecurrently started and need to be completed.
Input :
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Output:
What is a load?
Load refers to the standard hours of workassigned to a facility.
CRP uses the information to produce a load profilefor each machine or work center.
A load profile:
Compares released orders and planned orderswith the capacity of the work center.
Identifies underloads and overloads.
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Strategies for Timing Capacity:
CRP provides information to determine the timing
of capacity expansion. The basic strategies in
relation to a steady growth in demand are:
Capacity Lead Strategy
Capacity Lag Strategy
Average Capacity Strategy
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Capacity Lead Strategy
In anticipation of demand, capacity is increased.
Aggressive strategy used to lure customers
Capacity Lag Strategy
Increase capacity after demand has increased.
Conservative strategy resulting in loss of customers.
Average Capacity Strategy Average expected demand is calculated and capacity is
increased accordingly.
Most moderate strategy.
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Inventory Control
Supervision of supply, storage and accessibility of
items to ensure an adequate supply without
excessive oversupply.
Inventory control may refer to:
In economics, the inventory control problem, whichaims to reduce overhead cost without hurting sales
In the field ofloss prevention, systems designed to
introduce technical barriers to shoplifting It answers the 3 basic questions of any supply
chain: 1. When? 2. Where? 3. How much?
http://en.wikipedia.org/wiki/Inventory_control_problemhttp://en.wikipedia.org/wiki/Loss_preventionhttp://en.wikipedia.org/wiki/Shopliftinghttp://en.wikipedia.org/wiki/Shopliftinghttp://en.wikipedia.org/wiki/Loss_preventionhttp://en.wikipedia.org/wiki/Inventory_control_problem7/27/2019 Capacity Requirement Planning (1)
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Independent Demand Inventory SystemsIndependent demand inventory system-
Ensures smooth operations & allows storing-up WIP& finishedgoods.
Service firms are unable to inventory their output, but may useappointment backlogs, labor scheduling & cross-training to balance
supply & demand.
Four broad categories of inventories-
Unprocessed purchase inputs.
(WIP)- partially processed materials not yet ready for sales.
Products ready for shipment.
(MRO)- materials used when producing (e.g., cleaners &brooms).
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The Economic Order Quantity (EOQ)Model-
A quantitative decision model based on the trade-off between annual
inventory holding costs and annual order costs.
The EOQ model seeks to determine an optimal order quantity, where the
sum of the annual order cost and the annual inventory holding cost is
minimized. is the direct variable cost associated with placing an
order.
is the cost incurred for holding inventory in storage.
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Independent Demand Inventory Systems-
Cont.
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Adjustments to Capacity
Increase capacity by:
Adding extra shifts
Scheduling overtime or weekends
Adding equipment and/or personnel
Reduce load by:
Reducing lot sizes
Holding work in production control
Subcontracting work to outside suppliers
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Adjustments to Capacity:
Reduce capacity by:
Temporarily reassigning staff
Reducing the length of shifts
Eliminating shifts
Increase load by:
Releasing orders early Increasing lot sizes
Making items normally outsourced
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Reason to use CPR-
Bottleneck Management
The output of all products processed is controlled by
bottlenecks.
Work centers need to be scheduled at a rate to
prevent bottlenecks.
To eliminate bottlenecks, a time buffer inventory
should be established.
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What is CRP Used For?
To determine the capability of a system or resource toproduce a quantity of output in a particular time period.
For example:
Should the hospital hire more registered nurses to care
for the projected patient load?
Should the hospital build more rooms for patients?
What is the projected finish time for the current
projects?
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Summary-
To operate at maximum capacity, companies must use
the resources available. If resources under underutilized,
the profit margin will not be maximum.
Using capacity requirements planning helps a company
identify potential problems, such as eliminating the
possibility of overworking the current staff, overloading
machines, losing customers because the work could not
be completed as scheduled, paying penalties for late
delivery.